UPDATE FROM 2018 and 2020: Merkel on the way out. No, seriously this time.
We have an agreement. Typically for recent decades, the text presented on Wednesday is rather long at 177 pages, as every coalition partner tries to nail down the guidelines of policy for the next four years as precise as possible to prevent being railroaded by the others. But they are actually well within their timeplan which would have Olaf Scholz elected chancellor in the second week of December, and was considered ambitious by some given political disparities between the parties. Of course it still requires the consent of SPD and FDP party congresses next weekend (all but sure) and the Green base (likely, but there is some discontent in the party with the result).
As the topical work groups wrapped up their work twop weeks ago and handed over remaining issues to the three party leaderships to settle, there was already clear disaffection within parts of the Greens and their supporters of how it had gone so far. Environmentalists were complaining that SPD and FDP had blocked progress on climate protection; some like Baden-Württemberg state minister of transport Winfried Hermann even warned of negotiations failing and subsequent new elections - though before that, obviously a "Jamaica" coalition of CDU/CSU, Greens and FDP (and possibly another grand coalition) would be tried, where the Greens can hardly expect better results for them.
The party's youth wing has long warned they wouldn't agree to a coalition agreement that isn't fundamentally green enough for them, and various environmentalist organizations like Greenpeace etc. have admonished the party for not trying hard enough. In the end, what the Greens have achieved represents the limitations of their election result for their ambitions - as a 15-percent party they could push for either resolute climate protection or for the ministry of finances, but not both.
Even acknowledging that, some inner-party strife between the left and moderate "Realo" wings of the party promptly broke out for the first time in three years when it came to distributing the five cabinet posts allocated to the Greens in the agreement (the Liberals got four, and the Social Democrats six plus of course the Chancellery). The left wing is pissed that parliamentary co-group leader Toni Hofreiter got passed over due to the usual multiple quota requirements. Instead of him, foreign and transport specialist Cem Özdemir is now to become minister of agriculture because they needed to have someone with a migration background in the government.
Özdemir will also be the third "Realo" besides party co-chairs Annalena Baerbock (designated foreign minister) and Robert Habeck, who is going to be minister of economy with responsibility for climate protection tacked on. With the last two positions required to be filled by women, the left had to dredge up some female B-listers for the last two ministries, because somehow they don't have any heavyweights with the right chromosomes or immigration background. Well okay, they also got the position of state minister of culture in the Chancellery, which is sort of a consolation price. We'll see how happy the party is gonna be with their government.
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How Stable Is Germany's New Coalition?
The First Fractures Become Apparent in Berlin
The coalition talks were secretive and the three parties involved sought to exude unity and harmony. Now that Germany's next coalition agreement has been presented, though, fractures are becoming apparent. And surprisingly, the Greens may not be the Social Democrats' favorite child.
By Markus Becker, Markus Feldenkirchen, Matthias Gebauer, Milena Hassenkamp, Christoph Hickmann, Valerie Höhne, Christiane Hoffmann, Steffen Klusmann, Martin Knobbe, Timo Lehmann, Ralf Neukirch, Jonas Schaible, Christoph Schult, Christian Teevs, Gerald Traufetter und Severin Weiland
27.11.2021, 18.25 Uhr
Christian Lindner is a master of the cleverly chosen tactical quote. In his speeches and appearances, the head of the business-friendly and market-oriented Free Democratic Party (FDP) frequently cites authors, philosophers and other intellectuals to buttress his positions and appear cultivated – and, of course, to grandstand just a bit. Recently, Linder has even discovered a fondness for quoting Social Democrats.
It’s late on Wednesday afternoon and Linder is sitting in his corner office with a view of the German parliament building, the Reichstag – and he seems happier with himself and the world than he has been for quite some time. He has just presented the new governing coalition deal together with the Social Democrats (SPD) and the Greens, and he is now sitting down with DER SPIEGEL to discuss just how satisfied his party is with the 177-page agreement.
"A child falls in the Wupper River in winter," Lindner holds forth, and is at risk of drowning. "A man jumps into the icy waters, swims to the child, brings the little boy back to shore and lays him in his mother’s arms."
Lindner makes a brief dramatic pause before getting to the punchline.
"The mother says to the child: And where is your hat?"
His message: Don’t look at the little things that might be missing from the agreement. Instead, embrace the huge achievement that was attained.
Who is Lindner quoting with the story? Johannes Rau, the former German president and a highly regarded Social Democrat from the Wuppertal valley. Lindner says it was Rau who originally told him the joke. Earlier, at the press conference where the three parties presented their coalition deal, he quoted Egon Bahr, the former SPD thought leader who was the architect of Chancellor Willy Brandt’s Ostpolitik.
Lindner, it would seem, has developed a new appreciation for the center-left. Strange times indeed.
And it doesn’t stop there. The political constellation that will soon be taking over power in Germany is unprecedented at the federal level in the country. If you ignore the fact that German conservatives are divided into two parties -- the Christian Democrats (CDU) and the Christian Social Union (CSU) in Bavaria -- this is the first real three-party alliance to lead the federal government since 1957. It will likely produce the first female foreign minister ever in postwar Germany. And the size of the challenges facing this government are also rather novel.
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Everyone thought Germany would be getting an SPD-Green government with a bit of free-market liberalism from the FDP thrown in for good measure.
What Germany appears to have received instead is an SPD-FDP alliance with a hue of Green. Almost four decades after the last SPD-FDP federal alliance collapsed.
That isn’t ideal for the stability of the incoming government. The Greens have always been the most restive of the three parties, and discomfort with its own success is deeply rooted in its political DNA.
The SPD will likely be satisfied – for a time, at least – with the fact that they have unexpectedly managed to retake the Chancellery. Large parts of the FDP will simply be happy if taxes aren’t raised. The Green Party base, meanwhile, is impatient, desperate to see rapid progress on the climate crisis. Their thinking is that of the mother in Lindner’s joke: What happened to the hat?
How Stable Will This Coalition Be?
Green voters are certain to loudly voice their displeasure as soon as they believe Habeck and Baerbock are making too many compromises and concessions. Indeed, it already started on Wednesday, when it was revealed that the FDP had been given the Transport Ministry, which many had thought would go to the Greens for its key role in climate protection measures. Immediately, displeasure began swirling in the party, particularly on the left wing.
And the next conflicts are already lying in wait. Hardly anyone – neither with the Greens or with the FDP – believe that Habeck and Lindner, both of whom have a nose for power, will be able to peaceably coexist for the next four years, despite the show they have been putting on recently. Most assume that they will frequently cross paths, if not swords.
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It’s back in summer, at the end of July, and the campaign is still in full swing. It’s a sunny day on the Baltic Sea island of Fehmarn, but the surroundings aren’t quite to the liking of Christian Lindner.
The lead candidate for the FDP has just finished his beachfront campaign appearance and he is now sitting in front of a fries stand drinking water out of a plastic cup. It’s not exactly his natural habitat, but there aren’t many alternatives. Lindner has just half an hour for a quick interview, and at least its relatively quiet here.
Previously, on the boardwalk, Lindner had confidently said that Armin Laschet, the CDU lead candidate, would end up as chancellor. It was a time when nobody was talking much yet about a "Traffic Light” coalition between the SPD, Greens and FDP (so named because of the colors associated with the parties, with the SPD being red and the FDP yellow). Lindner, at this time, still believes the election will most likely produce a conservative-FDP-Green alliance (known as "Jamaica" in German political parlance), and for him, the decisive question is who, in such a constellation, will end up with the Finance Ministry, the FDP or the Greens.
Lindner knows that Robert Habeck would love to become finance minister because it is a powerful portfolio and because any steps taken to confront the climate crisis will also involve a fair amount of money. But Lindner has an idea for how he might be able to wrest the Finance Ministry from the Greens. As he begins sketching out his plan there on Fehmarn island, he begins to look quite a bit more comfortable, despite his surroundings.
If the Greens really want to have the Finance Ministry, says Lindner, go right ahead – but then he plans to demand that the FDP be given the Environment Ministry. We’ll see, he says, what they have to say to that.
Lindner knows that the Greens could never allow such a thing – handing away their core issue, and to the FDP of all parties. And ultimately, say people who took part in the just-concluded Traffic Light negotiations, Lindner actually deployed this plan. As soon as the Greens indicated even the slightest interest in the Finance Ministry, Lindner sprung his trap. Habeck and Baerbock were fully aware that if the Greens didn’t end up with the Environment Ministry, they would have a party revolt on their hands. And they couldn’t take that risk.
It was, of course, a bit of a bluff. Why should the FDP saddle themselves with a portfolio that is far down the priority list for their supporters – behind tax cuts, support for mid-sized companies and the continuation of private health insurance alongside the public healthcare regime? Ultimately, though, the move worked, and Lindner is now set to become finance minister, making him the winner of the first significant power struggle – to the detriment of the Greens.
In the general election at the end of September, the FDP only ended up in fourth place, making it the weakest party in this coalition. But right at the beginning of the negotiations, the FDP laid out a number of demands from which the party refused to budge: no speed limits on the German autobahn, no weakening of the debt brake (the law requiring German governments to maintain a balanced budget), no new taxes on assets and no increases to core taxes. All those things made an appearance in the paper produced by the exploratory talks between the parties.
And the FDP proved inflexible, despite repeated attempts from the SPD and Greens throughout the four weeks of coalition negotiations to squeeze out at least a couple of small concessions on tax policy in order to leverage just a bit more financial flexibility.
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The pandemic, with all its consequences, will be the first major challenge for this coalition government. The second, even bigger task is the climate crises – and on this front, all eyes are on the Greens and Habeck, the future vice chancellor who will take leadership of the economics portfolio, which, as part of the new coalition agreement, will also have responsibility for climate protection. The pressure will be on to deliver.
On paper, his chances for success aren’t so bad – even some climate activists are praising the targets agreed to in the coalition agreement: A special electricity surcharge for consumers and businesses under the German Renewable Energy Sources Act will be eliminated in 2023, buildings are to be renovated and a supply of hydrogen is to be established. The future government also wants to subsidize the construction and operation of climate-neutral manufacturing facilities. The only problem is that all these things will cost billions of euros, and where is that money supposed to come from?
Habeck is doing his best to exude confidence, but Lindner, as finance minister, will be holding the purse strings and could end up favoring Volker Wissing, the fellow FDP member who will be taking on the transport portfolio, when it comes to handing out funds.
Most Greens have accepted that Habeck had little choice but to cede the Finance Ministry to the FDP. Their hopes hadn’t been particularly high anyway. The fact that the FDP also managed to secure the Transport Ministry, however, has upset many in the Green parliamentary group.
When that group met on Wednesday morning, they demanded an explanation from their party leadership. Habeck answered evasively and referred the fact that they had finally secured the agriculture and environment ministries. But that was hardly enough for him to quell the discontent.
The nightmare of many Greens is that Transport Minister Wissing will demand billions in subsidies for cars with synthetic fuels in the coming years and the coffers will then be empty for projects the Greens want to pursue.
There is also deep frustration among the Greens that a subject as important as mobility was negotiated weakly from the perspective of many in the party. A chief Green negotiator contends that more could have been achieved in the chapter on climate-damaging subsidies. The state will continue to forego around 8 billion euros a year in revenues because diesel will continue to be subsidized via tax rebates.
The FDP had a powerful ally in the fight for the Transport Ministry: According to the negotiators, the SPD wasn’t interested in handing this key ministry over to the Greens for reasons of industrial policy. Once again, it was two parties against one.
Habeck will likely have to fight on a number of fronts. Many passages in the coalition agreement leave room for interpretation, even on such important issues as the coal phase-out. The Greens proved unable to secure a binding statement rather than the vague formulation "ideally by 2030,” because the SPD was against it. Together with the FDP, the Social Democrats have also denied the future vice chancellor the right to a "climate” veto.
The Greens had demanded that the climate minister should be able to stop all laws. Instead, this has become a "climate check” in the agreement, and the responsibility for it doesn’t lie with the future climate ministry, but rather with each individual ministry. Climate protection, it is true, is an issue for all of humanity and isn’t some niche concern for the Greens, but ultimately, missed climate targets will hurt the Greens far more than any of the other coalition parties.
The Coalition's Central Duel
There will be plenty of wrangling, and already, the central conflict is emerging: Habeck vs. Lindner, climate vs. money, Green Party vanity vs. FDP vanity. The ability or inability of these two men to work together will shape the climate of the next government and whether it is successful.
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The standoff between the two will be of equals, even if they come into this from different starting positions. On the one side, you have the business-friendly FDP, a party that in recent years didn’t always seem as if it would manage to leap the 5 percent hurdle necessary for parliamentary representation. On the other, the Greens, who actually had realistic-seeming aspirations of winning the Chancellery. That expectation is helpful in explaining the current level of disappointment prevailing among the Greens. For his part, Habeck himself thinks the agreement is not only pretty good, but also pretty green, but he senses many others in the party hold a different view.
Soon after the talks began, the Green negotiators realized that the SPD would by no means be their natural ally and that it was in part fighting with the FDP against the Greens’ interests. That proved to be the case in the working group on the economy, where the FDP and the Social Democrats wanted to finally ratify the CETA free trade agreement between the EU and Canada. The Greens reject the agreement’s provision on arbitration courts. Now, the Federal Constitutional Court is to decide, meaning the conflict has been postponed.
The talks were tough, though, and the Greens soon got fed up, and frustration and fatigue grew. At one point during an internal Green Party conference call, someone could even be heard snoring.
At the same time, the Greens have chalked up some other successes that go beyond climate policy. Germany’s citizenship laws are to be reformed, "advertising” for abortions will no longer be prohibited and a moratorium has been placed on sanctions that can currently be slapped on people who receive Germany’s long-term "Hartz IV” welfare payments. However, the FDP also wanted a lot of these things and the Greens are lacking the big trophies to give their party a higher profile. Habeck himself, for example, is even wondering himself whether he gave up too quickly on the Greens’ call for a firm speed limit of 120 kilometers per hour to be imposed on all German highways.
The disappointment in the party can’t be ignored, and the negotiators were apparently already reckoning with this – at least this is suggested by an email sent out to Green Party members of the European Parliament on Wednesday morning. Michael Kellner, a high-level official in the national party and party co-head Annalena Baerbock asked them in a letter to express their "pleasure publicly” that the Greens would be allowed to nominate the next German European Commissioner. But the success they are supposed to be cheering might not even happen. If Ursula von der Leyen remains the European Commission president after the European elections in two and a half years, then there will be no German post to fill. A Green Party source in Brussels says: "The party leadership probably wants, most of all, to dampen the discontent over the fact that we didn’t get the Transport Ministry.”
The Greens’ Successes Are Primarily Declarations of Intent
Just how difficult the Greens had it in the negotiations is also visible in another chapter of the coalition agreement: foreign policy. Here, too, they had to relent on some essential points.
For years, the environmentalist party has been fighting against the official NATO target that member states should spend 2 percent of their gross domestic product on defense. Under the contract, the coalition partners do not explicitly commit themselves to that target, but they do so in a de facto way. The agreement states that Germany wants to "fulfil the obligations it has entered into with NATO.”
Under the agreement, the partners also commit themselves to German participation in nuclear deterrence, known in NATO parlance as nuclear sharing. As before, it remains possible that in a worst-case scenario, German fighter jets could be forced to drop American nuclear bombs.
One section that does have the Greens’ handwriting on it, though, is the one on EU policy. It speaks of a "federal European state,” an amendment to the EU treaties, a new European constitution and a "genuine EU foreign minister.” There’s just one hitch: How is this all going to be implemented in a deeply divided Europe?
In fact, the Greens’ successes are primarily declarations of intent. Foreign Minister-designate Baerbock is likely to repeat them like mantras over the next four years. But the most contentious point of European policy, which both the Greens and the SPD repeatedly demanded during the election campaign, doesn’t even appear in the coalition agreement: the issuance of EU bonds, with joint liability for them across the bloc.
Baerbock didn’t fare nearly as well as hoped in the national election and she was forced to cede the role of vice chancellor to Habeck. For election winner Scholz, on the other hand, the coalition negotiations were also a success, at least to a large extent.
Scholz was able to push through the minimum wage, a change to the social safety net that would allow the pension system to invest part of its money in capital markets and significant changes to the country’s long-term welfare program. In addition to the Chancellery, the SPD will also be in charge of key ministries like labor, interior and defense. There is little criticism within the SPD. The party has spent years quarreling internally, but that is barely visible now.
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When Scholz Is Away, Vice Chancellor Habeck Will Represent Him
The Social Democrats are planning two online conferences and a digital party conference on Dec. 4, where the coalition agreement will be voted on. Only then will Scholz present the lineup of SPD ministers. But will he be able to keep the roster quiet for that long?
It’s likely that the pressure will be ratcheted up so high next week that some of the names will find their way into the public eye. Considerable attention is likely to be paid to the question of who with the SPD will take the helm of the Health Ministry at the height of the coronavirus pandemic. Scholz would have to come up with a very good justification for not tapping Karl Lauterbach, a health policy expert in his party who has been one of the most prominent voices in the German media when it comes to addressing the pandemic.
Despite their disappointment, it is also considered very unlikely that the Green Party will reject the coalition agreement. However, only days after the presentation of the coalition agreement, the party had already become entangled in internal battles over ministerial posts. Suddenly, the old fight between the wings of the party have reemerged, one that Habeck and Baerbock had insisted was a thing of the past: the left wing versus the realos, with plenty of unsettled scores.
Things have been much quieter for the FDP, which presented its list of ministers on Wednesday. The FDP still needs to approve the agreement at a special digital party conference on Dec. 5, but there is little doubt it will go through. Then, on Dec. 8, Olaf Scholz could be elected in parliament as Germany’s next chancellor.
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